Sunday, November 8, 2009

What matter for product sale and how?
What matter
This is very critical question, what is matter for product sale and organization success- organization strategies, organization polices or advertisement, but I m not fully agree of this, according to me is something different, which is matter for organization and consumer called- DISTRIBUTION CHANNELS (Distributors, wholesaler and retailers)
I am asking a question to myself and all consumers, you know the company name of every product you use? My answer is no, because we use products, not company and we know retailer who sale this product to us.
Let’s take an example of any new product, when new products came to market consumer purchase this product from retailer, because they have trust on retailers that, he will not sale them wrong product and this is truth in market.

How matter
No company willing to sale their product on credit, companies take advance draft from distributors, but what distributor do, he sale company product on credit to wholesaler or retailer. And wholesaler and retailer purchase it because they know we will pay amount to distributor or wholesaler when product will sale or after some days of purchasing.
Example- I was the sales executive in mobile company, we take advance draft from distributor but distributor sale mobile to retailer on credit. Retailer purchase new brand because of trust on distributor and for profit margin. But consumer purchase mobile because of trust on retailer. Indian market is very complicated, and it is hard to understand. I have another example of Pepsi where I have done my summer training, distributor sale Pepsi by hiring sales persons, and they sale Pepsi in auto, and retailer purchase more Pepsi because of them, their behavior, credit power, service and relationship, we can say many thing, but the main thing is, distribution channels matters.
Dell computers was the company who were sale his machine directly to the consumer but now they also selling his machine by distributors, because they realize their mistake. Distribution has tremendous power, and this power is more powerful country, like- India there is large consumers and growth.
After reading this, a question can arise in your mind? that why the retailer and wholesaler purchase products on credit, the thing not only that product is new or old, one very interesting thing behind it, I observe this thing when I was with my father business (distribution), retailer purchase product on credit and go to their store and sale that product, by his capabilities, but not give that money immediate to the wholesaler, they invest it into other products, and after some days they give back money to wholesalers’. Thing is work in that way.

Pulkit goial

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